The Hindu : Karnataka News : `Will help increase savings'

Online edition of India's National Newspaper
Wednesday, Mar 02, 2005

Karnataka

Karnataka

`Will help increase savings'

By Our Staff Correspondent

UDUPI, MARCH 1. The Udupi Chamber of Commerce and Industry has given a mixed response to the Union Budget presented by the Finance Minister, P. Chidambaram, on Monday.

In a press release issued here, the chamber said the tax concessions for senior citizens and women and continuance of tax rebate are a welcome step. The budget will help increase savings as persons with income up to Rs. 1 lakh will not have to pay any tax. The reduction in import duty will increase corporate profits. The budget is anti-inflationary and contains positive steps, it said.

But the decision to impose 0.1 per cent tax on cash withdrawals of over Rs. 10,000 a day is uncalled for. It is not right to tax a person for withdrawing his own money. The concession in service tax will benefit 80 per cent of taxpayers. Since import duties have been cut, there is the possibility of reducing the prices of petroleum products. But this hinges on the question of subsidies. The withdrawal of standard deduction has hit the salaried class, the release said.

`Disappointing'

The District Small Industries Association (DSIA) has said that the budget is disappointing for small-scale industries as it has proposed nothing to rejuvenate them. In a press release issued here, the association said that the budget has neglected the small-scale sector.

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